Capital Update – For the Week Ending Sept. 20, 2024

NPPC President Stevermer keynotes Ag Outlook Forum | Western Caucus hosts Stevermer on Prop. 12 podcast | Ag, food groups urge renewal of Generalized System of Preferences | Coalition asks Biden to intervene in ports-dockworkers negotiations | NPPC's Dr. Forseth presents at an African Swine Fever forum | NPPC's Dr. Johnson gives nutrition update at Meat Secretariat meeting | NPPC participates in China trade panel for congressional staff | NPPC's Dr. Carr attends Codex Committee on Food Exports, Imports | NPPC, Ohio Pork lead coalition to intervene in defense of agricultural production in lawsuit over Lake Erie nutrient levels | Applications open for Neil Dierks scholarship

NPPC President Stevermer Keynotes Ag Outlook Forum

What happened: NPPC President Lori Stevermer, a Minnesota pork producer, gave a keynote presentation at Agri-Pulse's Ag Outlook Forum in Kansas City, Missouri.

Stevermer discussed the need for Congress to approve as soon as possible a new Farm Bill, with provisions addressing foreign animal diseases, funding export promotion programs and a feral swine eradication program, authorizing the National Detector Dog Training Center, and, most importantly, fixing the problems caused by California Proposition 12.

She also highlighted agriculture's labor shortage and the need to reform the visas that can be used by producers, including the TN visa for professional positions such as animal breeders, animal scientists, and veterinarians. U.S. producers routinely are being denied TN visas, with TN applicants being rejected for no cause and with no ability to appeal.

Following her presentation, Stevermer participated in a Q-and-A session with Agri-Pulse CEO and Publisher Sara Wyant.

NPPC Economist Holly Cook and Immediate Past President Scott Hays, a Missouri pork producer, also attended the Forum.

Why it matters: The Agri-Pulse Ag Outlook Forum is an opportunity for NPPC to communicate its priorities and concerns. The Forum featured top economic, policy, business, and government officials presenting their current outlooks and helping identify the challenges and opportunities agricultural producers and leaders face.

NPPC President Lori Stevermer (left) highlights pork industry priorities with Agri-Pulse's Sara Wyant.

Western Caucus Hosts Stevermer on Prop. 12 Podcast

What happened: NPPC President Lori Stevermer joined Congressional Western Caucus Chairman Dan Newhouse (WA-04) on "A Voice for Rural America" podcast.

This edition focused solely on California Prop. 12 and featured Rep. Mark Alford (R-MO) and Stevermer, who gave a firsthand account of pork producers' challenges with a potential patchwork of 50-state regulations. Stevermer warned that some pork producers will go out of business if Prop. 12 - and other arbitrary, conflicting state laws - are allowed to stand and dictate interstate commerce.

Why it matters: Fresh off the heels of NPPC's Fall Legislative Action Conference last week, where pork producers were in Washington lobbying for industry priorities, Stevermer once again had lawmakers' ears to reiterate the urgent need for a federal fix to Prop. 12.

Ag, Food Groups Urge Renewal of Generalized System of Preferences

What happened: NPPC led an ad-hoc group of 27 agriculture and food organizations in urging Congress to "promptly" approve legislation reauthorizing the U.S. Generalized System of Preferences (GSP), which gives imports from eligible countries duty-free access to the United States. The trade program expired at the end of 2020.

In a letter to the chairmen and ranking members of the Senate and House trade committees, the groups asked lawmakers "to advance and pass legislation to reauthorize GSP and return to building goodwill with potential customers."

GSP, which was granted to more than 120 mostly developing countries, has been an important tool used by U.S. trade negotiators to persuade nations to eliminate trade barriers, adhere to science-based international standards, and open their markets to U.S. goods. As a condition of eligibility, GSP beneficiary countries must give U.S. products "reasonable and equitable" access to their markets.

Why it matters: America's farmers and ranchers rely on foreign market access to thrive and grow their businesses. Allowing signature trade programs to expire for years on end hurts the credibility of the United States as a trusted trading partner. For U.S. pork producers, gaining and expanding access to markets around the world is paramount. Exports contribute significantly to producers' bottom line, equating to an average of $63.76 in value from each hog that was marketed in 2023 when the pork industry sent more than 2.9 million metric tons of pork valued at $8.16 billion - a record - to more than 100 nations.

Coalition Asks Biden to Intervene in Ports-Dockworkers Negotiations

What happened: With a Sept. 30 deadline looming, an ad hoc coalition of agricultural and business organizations, including NPPC, again is urging the White House to intervene in stalled labor negotiations between East Coast and Gulf of Mexico dockworkers and port facilities owners. The International Longshoremen's Association (ILA), representing dockworkers, wants a new contract with the U.S. Maritime Alliance (USMX), which represents port terminal operators, by Oct. 1 - or its union members will strike at the 36 ports from Maine to Texas. The current labor agreement expires Sept. 30.

In a letter to President Biden - the second in the past three months - 177 state and national organizations asked the administration to "provide any and all support to the parties in their contract negotiations. In addition, the administration must be ready to step in if a strike or other action occurs that leads to a coastwide shutdown or disruption."

NPPC's take: NPPC wants to avoid disruptions at the ports on the East Coast and Gulf of Mexico like those that occurred in late 2014 into early 2015 at West Coast ports. Those work slowdowns at shipping terminals from San Diego to Seattle cost the U.S. meat industry millions of dollars in lost export sales.

Why it matters: The U.S. pork industry depends on exports, which annually account for about a quarter of all sales and contribute significantly to every producer's bottom line. About 60% of U.S. pork exports are transported by ocean freight, with nearly 45% being shipped from East Coast and Gulf ports. Chilled pork, for example, is sent out of those ports to markets in the Caribbean and Central and South America.

Port disruptions, including dockworker strikes and work slowdowns, can jeopardize the delivery of perishable commodities, costing agricultural producers millions of dollars and, the potential loss of foreign customers.

NPPC's Dr. Forseth Presents at Forum on African Swine Fever

What happened: NPPC's Dr. Anna Forseth, director of animal health, presented at the fourth North American African Swine Fever (ASF) Forum in Ottawa, Ontario, Canada. Forseth set the stage for what is at risk should there be an ASF detection. Other discussions at the forum focused on four key areas: preparedness planning, enhanced biosecurity, business continuity, and coordinated risk communication.

NPPC's take: The ASF forum fosters continued collaboration on ASF prevention and preparedness efforts, bringing together government and industry leaders to discuss progress made since 2019 and future opportunities. This proactive effort between the North American countries will have a significant impact on the prevention of an ASF introduction as well as an ASF response.

Why it matters: ASF has ravaged much of Central and Eastern Europe and many Asian nations. It was confirmed in the Dominican Republic in July 2021 and shortly after in Haiti, marking the first time in 40 years the pig-specific disease had been in the Western Hemisphere. An outbreak of ASF in the United States - or Canada or Mexico - would have devastating impacts on trade within North America and beyond. Last year, the U.S. pork industry exported nearly $8.2 billion of products.

Attendees at the North American African Swine Fever Forum listen to presentations.

NPPC's Dr. Carr Attends Codex Committee on Food Exports, Imports

What happened: Dr. Trachelle Carr, NPPC's senior director of international technical affairs, participated in the 27^th session of the Codex Alimentarius Committee on Food Import and Export Inspection and Certification Systems in Cairns, Australia.

Among the topics discussed at the meeting were:

• Proposed draft guidelines on the prevention and control of food fraud,
• A proposed draft of guidelines related to equivalence of food safety inspection systems, and
• Draft revision and updating of the Principles for Traceability.

The committee develops principles and guidelines for food import and export inspection and certification systems to harmonize methods and procedures that protect consumer health, ensure fair trading practices, and facilitate international trade in food. It also provides assurances that foods comply with various requirements, especially statutory health requirements.

The committee also makes recommendations for information exchanges on food import/export controls and consultations, as necessary, with other international groups working on matters related to food inspection and certification systems.

NPPC's take: NPPC supports the work of Codex Alimentarius, which provides the U.S. pork industry a global voice to weigh in on standards affecting food safety, food production, and international trade. NPPC also collaborates with food and agriculture groups in several countries to gather consensus on Codex's international standards and guidelines.

Why it matters: Standards adopted by the commission have wide-ranging applications, as they are used throughout international trade negotiations as baselines for trade text.

NPPC's Dr. Johnson Gives Nutrition Update at Meat Secretariat Meeting

What happened: NPPC's Dr. Ashley Johnson, director of food policy, participated in a meeting of the International Meat Secretariat (IMS), discussing nutrition science, global trends, and challenges related to meat production and consumption.

The IMS represents the global meat and livestock sector, bringing together livestock producer groups, national and regional meat associations, exporters, meat processing companies, governments, and corporate partners that represent more than 75% of the world's production of meat from cattle, hogs, and sheep.

Johnson, who serves on the IMS Nutrition Committee, gave an update on U.S. nutrition policy. Currently, there is a global trend towards reducing meat consumption. Committee members discussed nutrition science and developed a global strategy for addressing nutrition recommendations to ultimately maintain meat consumption.

Why it matters: The 2025 Dietary Guidelines for Americans is currently under review, as the advisory committee is discussing recommendations to reduce meat consumption, following a global trend. It is imperative to keep current meat consumption recommendations, as it could have a negative impact the nutrition and decrease the demand for pork. The IMS works to meet the future demands for sustainable, high-quality, nutritious, and safe animal protein to ensure the sector's contribution as an essential part of a healthy, sustainable diet. Its nutrition experts inform debates and, ultimately, policies that affect the production and consumption of meat.

Dr. Johnson and IMS participants tour a processing facility.

NPPC Participates in China Trade Panel for Congressional Staff

What happened: Farmers for Free Trade, which includes NPPC, held a China trade panel for the Congressional Agriculture Trade Caucus. Maria C. Zieba, NPPC's vice president of government affairs, was on the panel, which also included representatives from the American Farm Bureau, American Soybean Association, and Bayer.

Attended by dozens of congressional staff, Tuesday's panel briefing discussed the importance of China as an export market and a source for many farm inputs.

Reps. Jim Costa (D-CA), Dusty Johnson (R-S.D.), Jimmy Panetta (D-CA), and Adrian Smith (R-NE), in early January, launched the bipartisan trade caucus to advance and promote policies vital to U.S. agriculture, including boosting agricultural exports, facilitating food and agriculture trade, and eliminating trade barriers.

NPPC's take: NPPC strongly supports trade with China but remains concerned with the Asian nation's tariff and non-tariff barriers to U.S. pork. The country requires, for example, all food manufacturers, processors, and storage facilities to be registered and has a ban on the feed additive ractopamine. Since April 2018, it has had a 25% retaliatory tariff on U.S. pork in response to U.S. duties on a host of Chinese products over China's steel and aluminum exports to the United States.

Why it matters: China is one of the top five foreign destinations for U.S. pork exports. Last year, China/Hong Kong took more than $1.27 billion of U.S. pork, making it the No. 3 value market; it was the No. 2 volume market.

Zieba (center, speaking) discusses with congressional staff the importance of China as an export market for U.S. pork.

NPPC, Ohio Pork Lead Coalition to Intervene in Defense of Agriculture over Lake Erie Nutrient Lawsuit

What happened: NPPC and the Ohio Pork Council led a coalition of 11 state and national agricultural groups in filing a motion to intervene as parties in a lawsuit accusing agricultural producers of harming water quality in the Western Lake Erie basin.

In May, a Chicago-based extremist group, the Environmental Law and Policy Center (ELPC) sued the U.S. Environmental Protection Agency (EPA) over its approval of Ohio EPA's Total Maximum Daily Load (TMDL) for western Lake Erie. Known as the Maumee Watershed Nutrient TMDL, the plan was designed by the state of Ohio to address the presence of nutrients in the watershed and meet federal water quality standards.

ELPC asserts the TMDL is legally deficient in that it fails to:

• Set limits for dissolved reactive phosphorus,
• Set an adequate margin of safety,
• Assign waste load allocations to discharging CAFOs as point sources,
• Apportion the load allocation to nonpoint sources, and
• Provide "reasonable assurances" that necessary pollution reductions will be achieved.

Why it matters: This marks the third time ELPC has sued the U.S. EPA over the status of western Lake Erie, claiming the agency failed to fulfill its responsibilities under the Clean Water Act to address nutrient pollution. The lawsuit ignores the lengthy science-based process that state and federal authorities, working with stakeholders throughout the region, followed to develop the current TMDL. It also disregards major investments made by producers and other stakeholders in water quality. Instead, it seeks to place additional limits and restrictions on the amount of phosphorus that livestock and row crop farmers can use, blaming agriculture solely as the source of Lake Erie's nutrient challenges. If permitted to intervene, the coalition will be full parties to the litigation and able to defend agriculture against this latest activist attack on food production.

The ELPC's lawsuit comes as other states in EPA Region 5 also face similar activist driven attacks on production agriculture practices.

Applications Open for Pork Industry's Neil Dierks Scholarship

What happened: The National Pork Industry Foundation (NPIF) is accepting applications for the Neil Dierks Scholarship, which honors NPPC's former longtime CEO and his contributions to the U.S. pork industry. The nonprofit NPIF is dedicated to advancing research and education that benefits the pork industry.

The $5,000 scholarship is awarded annually to a graduate student enrolled in a land-grant university pursuing a field of study that directly supports the pork industry.

The Dierks scholarship program complements the Lois Britt Memorial Pork Industry Scholarship, also sponsored by NPIF in partnership with the CME Group. The Britt scholarship awards $2,500 each to 10 undergraduates studying in a two-year swine program or a four-year college of agriculture program.

Applications for the Neil Dierks Scholarship are due by December 31, 2024, while the deadline for the Lois Britt Memorial Pork Industry Scholarship is December 10, 2024. Recipients of both scholarships will be announced at NPPC's annual business meeting, the National Pork Industry Forum.

For eligibility requirements and to apply for the Dierks scholarship, click here; for the Britt scholarship, click here. If you have any questions, please contact Lucy Russell, NPPC manager of producer engagement, at 515-864-7983 or [email protected].

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